MIRA INFORM REPORT

 

 

Report No. :

348762

Report Date :

17.11.2015

 

IDENTIFICATION DETAILS

 

Name :

CANCUN PRODUCTS LTD.

 

 

Formerly Known As :

UZI PATAEL LTD

 

 

Registered Office :

18 Hamiktzo'ot Blvd., Ispro Center, Modi'in-Maccabim-Re'ut 7177700 Israel

 

 

Country :

Israel

 

 

Year of Establishment :

1985

 

 

Com. Reg. No.:

51-157335-4

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Importers and marketers of seafood

 

 

No. of Employee :

50

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Israel

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

ISRAEL - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

 

Source : CIA

 

Company name and address  

 

CANCUN PRODUCTS LTD.

 

Telephone                              972 3 951 80 74

Fax                                        972 3 951 80 73

Email:                                     ronit@cancun.co.il

18 Hamiktzo'ot Blvd.

Ispro Center

MODI'IN-MACCABIM-RE'UT 7177700 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a sole proprietorship in 1985 and operated under the style "EZRA PATAEL".

Converted into a private limited company and registered as such as per file No. 51-157335-4 on the 27.05.1991.

Originally registered under the name UZI PATAEL LTD., which changed to the present name on the 22.12.2003.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 2,640.00, divided into - 2,640 ordinary shares of NIS 1.00 each, of which 420 shares amounting to NIS 420.00 were issued.

 

 

SHAREHOLDERS

 

1.     Ezra Patael, 50%,

2.     Ms. Dorit Patael, 50%.

 

 

DIRECTORS

 

1.    Ezra (Uzi) Patael, General Manager,

2.    Ms. Dorit Patael,

 

BUSINESS

 

Importers and marketers of seafood. Import is from many counties, mainly from Norway, India, Vietnam and China.

Also local purchasing and marketers of meat, fish and poultry.

 

Sales are mainly to the local restaurants (e.g. chains BLACK, GIRAFFE, EL GAUCHO) and delicatessens, as well as supermarket chains (selling also under own brand "Cancun").

Most of subject’s suppliers are foreign.

 

Amongst local suppliers: NETO GROUP, LACHOVICH, TNUVA/ ADOM ADOM, etc.

Shipping services: ZIM NAVIGATION.

 

Operating from owned premises, on an area of 4,500 sq. meters, in 18 Hamiktzo'ot Blvd. (or "Shderot Hamikzo'ot" in Hebrew), Ispro Center, Light Industrial Zone Einav Center, Modi'in-Maccabim-Re'ut (to where they moved from 4 Israeli Shimon Street, Rishon Le-Zion). Also using storage facilities and logistics of LOGISTIMEN and HIRON in Ashdod, based on need.

 

Having 50 employees.

 

 

MEANS

 

Financial data not forthcoming.

 

Group's owned property Ispro Center, Light Industrial Zone Einav Center, Modi'in, is valued at several NIS millions.

 

There are 18 charges for unlimited amounts registered on the company’s assets (all assets, including financial and fixed assets), in favor of Mizrahi Tefahot Bank Ltd., Mercantile Discount Bank Ltd., Bank Leumi Le'Israel Ltd., and Bank Otsar Hahayal Ltd.

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

CANCUN TRADE MANUFACTURING MARKETING AGRICULTURAL PRODUCTS LTD., sister company, part of CANCUN Group.

EZRA PATAEL ASSETS LTD.

 

 

BANKERS

 

Mercantile Discount Bank Ltd., Rishon Le Zion Branch (No. 668), Rishon Le Zion, account No. 120340.

A check with the central banks’ database did not reveal any negative information regarding subject’s a/m account.

 

Bank Leumi Le'Israel Ltd., Principal Branch Tel Aviv (No. 800), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

In May 2014 a citizen filed a motion for class action against subject (on NIS 5 million) to be approved by the Haifa District Court, claiming of misleading labeling on their products. The matter reached a compromise (before subject submitted its defense paper), which was approved by the Court in March 2015. Subject claimed there was an error in the labeling of a certain shipment, therefore as part of the compromise it will sell the same goods from the shipment in 18% discount and sell during 2015 further 1,000 packages of other kinds with discount up to 18%.

Nothing unfavorable learned apart from the above (in an incident in 2012 subject was accused and convicted for violating business license regulation, however the matter is relatively insignificant).

 

Subject's officials refused to disclose financial details.

 

This is a veteran business, well-known in its field.

 

It should be noted that in October 2015 the World Health Organization (WHO) published a report stating that processed meat products includes cancerous ingredients, advising to lower their consumption. This report caused an immediate significant decrease in the sale of processed meat products in Israel, and a survey reported on 05.11.2015, notes that in the past week there was an average quantitative decrease of 27% in sales of processed, chilled and frozen meat and poultry products. Since this report was published recently, we cannot estimate its influence on subject in the long run.

 

According to sources in the branch in 2010, during the previous 5 years annual sales of fish (fresh and frozen) were in value of circa NIS 450 million, from import and local fishing, though import rate of fresh fish keeps growing on account of local production. Import of fresh fish exceeded 10,000 tons in 2012, almost 3 times the quantity in 2006. Import of frozen fish reached over 52,000 tons in 2012 and was valued at NIS 316 million according to Nilsen survey of January 2010.

 

Consumption rate of fish has been rising but still below average comparing to other western countries. Average per capita consumption stands at around 13 kg per year. Some 70% of the goods are sold to private consumers, the rest to the institutional market.

 

There are about 10 large importers of meat to Israel, due to the high entry barriers to the branch. One third of the local meat market is comprised of fresh meat, mainly from local cattle herds (60%), the rest from import.

In 2010, some 91 thousand cattle heads (calves) were imported to Israel, mainly by TNUVA with 30% share.

In 2009 106,600 tons of meat (cattle) was sold, of which 36,000 tons from local suppliers and the rest from frozen imported meat.

 

According to sources in the branch in 2010, during the previous 5 years annual sales of fish (fresh and frozen) were in value of circa NIS 450 million, from import and local fishing. Frozen fish market was valued at NIS 316 million according to Nilsen market survey of January 2010.

 

According to Central Bureau of Statistics (CBS), import of food and beverages to Israel in 2014 reached NIS 7,688 million, an impressive rise by 10.7% from 2013, continuing the upward growth trend in the last years (0.7% in 2013, 14% in 2012). The positive trend continued into 2015, with import rising by 12.5% in the first 5 months compared to the parallel period in 2014.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial details, considered good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.17

UK Pound

1

Rs.100.66

Euro

1

Rs.70.97

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.